Assets outside of Spain report
SUMMARY OF MAIN ASPECTS OF REPORT OF ASSETS OUTSIDE OF SPAIN
Royal decree 1558 /2012 came into force Jan 1st 2013, making it compulsory both for Spaniards and residents in Spain to file an annual report on whatever assets they might have outside of Spain.
This new liability is part of the Spanish government antifraud program to prevent tax evasion
These decree transposes the EEC community directive for the governments administrative cooperation in the field of taxation, reinforcing the possibility of exchange of information between countries, needed for the liquidation of taxes
With these legal instrument the different national tax agencies receive competence to request mutual taxation assistance to other EEC states.
It has already been several years ago that the Spanish tax agency started to exchange information of the EEC residents with their respective countries through the form 299. All EEC governments are aiming to make major improvements on all type of agreements for exchange of information in order to be able to optimize the respective national collection of taxes and consequently enhance the battle against tax fraud.
Questions that you might ask yourself:
1. Who exactly has to file this report ?
Residents in Spain, independently from their nationality, who own assets located outside of Spain
2. Which assets have to be declared ?
a. Accounts in financial institutions if the total balance by 31/12/2012 was more than EUR 50,000. Examples:
i. Current accounts.
ii. Savings accounts.
iii. Term deposits.
iv. Credit accounts.
v. Other accounts.
The € 50,000 will be the sum of the different accounts.
b. Shares or any other analogue financial instrument, which represents the participation in any type of company, fund, trusts, when its value by the end of 2012 is all together more than EUR50,000. Examples:
i. Values or rights of participation in any type of legal entity, as shares and participations in companies in any form.
ii. Representative values of the transfer of capital to 3rd parties, bonds….
iii. Values provided for management or administration, through any legal instrument, including trusts or any other figure that even lacking legal personality might be capable of trading.
iv. Shares and participacions in the capital or equity fund of collective investment institutions located abroad
c. Life or invalidity insurances, when the insurance company is located outside of Spain, and the rescue or capitalization value on 31/12/2012 was more than EUR50,000. Examples:
i. Life disability insurance, If the company is located abroad
ii. Temporary life income generated as a result of the deposit of capital abroad
d. Real estate properties located outside of Spain when value of properties all together were to be over EUR50,000. Examples:
i. Ownership of the property
ii. Actual use or enjoyment of the ownership rights (bare ownership,usufruct)
iii. Timeshare, part-time property or similar formulas on real estate
iv. Other possible rights over real estate in the following years.
In the following years, it will not be needed to declare any of the previous described assets unless the value considered has not increased during that year more than EUR20,000.
3. Is there a tax to be paid?
NO, There is no tax to be paid. This report only intends to gather information.
4. When do I have to file this report?
This report will be filed via Internet and the deadline will be between January 1st and March 31st of the year. As an exception, the filing of the report for 2012 has been extended until 30/04/2013.
5. What happens if I do not file the report?
Were you not to file the report, it will be considered a serious infraction and you will be fined with a minimum amount of EUR10,000 , plus EUR100 for each data Item not informed of. Were you to file the report outside of the established deadline, you will have a minimum fine of EUR1500, plus EUR100 for each data item not informed of.